Victoria'S Underwear Is Not Easy To Sell, And Even Its PINK, Which Is Mainly Casual Wear, Is Also Dragged Down.

Last month,

But the downturn of Wei is continuing.

L Brands recently announced in a telephone conference with investors and reporters that it will close at least 20 stores by the end of this year, including 6 stores closed in recent months.

Up to now, the company has not specified which stores will be closed.

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One of its most important brands, Victoria's performance has been somewhat sluggish in recent years.

In particular, the PINK series, once positioned as one of the driving forces of L Brands growth, began to slow down in the second half of 2017, and showed a downward trend in 2018 and March.

This also greatly affected the performance of L Brands in the market.

According to the second quarter earnings report released recently by L Brands, the revenue of the group increased by 8.3% over the three months ended August 4th, with sales reaching US $2 billion 984 million, but net profit fell by 29% to 99 million US dollars.

Although the company's financial position has improved over the past quarter, compared with the previous quarter's operating income fell 26% to 155 million US dollars, the decline in profit margins still makes the market value of the company controversial.

For Wei MI, the emergence of sports underwear with consideration of comfort and practicality is one of the main reasons for the decline in brand performance, but more importantly, because its product performance is not satisfactory.

According to a survey by market research firm YouGov, the secret of Vitoria is gradually becoming a brand name among 18~29 year old female customers. Since 2016, customer satisfaction has dropped from 42% to 30%.

Affected by this, the brand's "buzz score" series has dropped from 31% to 23% in the past two years.

In order to save the brand crisis, Victoria has also been able to clean up inventory through continuous price promotions, but in fact, this way has a more negative impact on the brand image.

Jefferies stock analyst Randal Konik has said that the price of underwear has reached its lowest level in 10 years, and this downturn has now spread to the sub brand PINK.

According to data from "Lian Shang network", the price of underwear in the group has dropped by 12.5%, and the price has dropped by 10% over the same period.

Besides, Wei is in itself.

The positioning is also more and more thought-provoking.

For example, relying on the secret show, the secret of Vitoria has always regarded the perfect model as one of the brand marketing strategies. However, with the rise of body positive in recent years, sexy has long been the sole pursuit of female consumers for underwear, and the more and more the clothing industry is showing tolerance for different shapes, it is difficult for Victoria to attract young consumers to stop.

In this regard, Katie Smith analysis, an industry analyst in the US, said that if he wants to continue to develop, he must make a choice in the direction of development, that is, increase the rate of brand repeat purchase of few consumers, or introduce more new products according to the current trend.

Conscious of the problem, Wei chose the latter.

According to Jan Singer, chief executive of Wei Wei, Wei is paying close attention to the new trend in the industry, and intends to actively absorb the opinions of consumers and launch products that are more in line with market demand.

In addition, it will also increase according to the preferences of the Millennials.

Pajamas, sportswear and other new products.

But for now, this series of plans still needs a long time for market feedback.

In this case, temporarily closing several stores and saving the cost of the brand may be the safest way for the company to do so.